Patrick Mahomes' contract extension could have an impact on Jimmy Garoppolo. (Jose Carlos ... [+]
It was just a few months ago that Patrick Mahomes led his Kansas City Chiefs to a comeback win over Jimmy Garoppolo and the San Francisco 49ers in the Super Bowl.
After his MVP performance in that game, reports broke that Mahomes would soon receive a record-breaking extension—one that would shatter every financial mark known to the football world.
That now appears to have happened. Mahomes, 24, has reportedly agreed to a record-setting ten-year, $450 million extension with Kansas City. The contract commits Mahomes to Kansas City for the next dozen seasons and pays him $140 million in injury guarantees.
This represents the largest contract in the history of North American team sports, outpacing the $426.5 million Mike Trout received on his extension with MLB’s Los Angeles Angels last year.
Mahomes has more than earned this payday, having accounted for nearly 10,000 total yards with 80 touchdowns and only 18 interceptions in two seasons as a starter. He has yet to hit his prime, earned the NFL MVP Award in 2018 and is coming off a Super Bowl title.
In an NFL that has seen the quarterback market reset itself on a near-monthly basis, some will question why Mahomes took this long-term contract. It’s obviously a rarity around the football world. But to put this into perspective, the $140 million Mahomes received in injury guarantees is $45 million-plus more than the second-highest figure. That went to Atlanta Falcons signal caller Matt Ryan back in 2018.
Dak Prescott is among the quarterbacks most impacted by Patrick Mahomes' extension. (Photo by Tom ... [+]
While no other quarterback compares to what we’ve seen from Mahomes in his first two seasons and his importance to the Chiefs, this is going to dramatically change the market at that position moving forward. It impacts the Dallas Cowboys’ ongoing negotiations with Dak Prescott, as well as the new deal Deshaun Watson should soon receive from his Houston Texans.
Further down the road, other quarterbacks are obviously going to be impacted. That includes a quarterback in Jimmy Garoppolo who himself reset the market when he signed what now seems to be a minuscule five-year, $137.5 million extension with San Francisco early in 2018.
Coming off a dreadful performance against Mahomes and the Chiefs in Super Bowl LIV, Garoppolo could very well be entering a do-or-die season in San Francisco. Sure, he put up one of the best statistical regular seasons in franchise history en route to a shocking 49ers appearance in the big game. Even so, San Francisco can get out from under Garoppolo’s contract with a mere $2.8 million dead cap hit following the 2020 season.
Previously, this seemed to suggest that Garoppolo needed up his game in a big way in order to justify being seen as the long-term solution in San Francisco. While that might still be true from an on-field perspective, the finances have changed big time following Mahomes’ extension.
Jimmy Garoppolo is indirectly impacted by Mahomes' record-setting contract. (Photo by Focus on ... [+]
Garoppolo’s average annual salary of $27.5 million now ranks outside the top ten among quarterbacks in the NFL. Again, that’s a representation of the changing quarterback market in today’s pass-first league. It also seems to suggest that San Francisco is in a great financial position at quarterback moving forward.
Despite the ongoing Covid-19 pandemic and the economic downturn that has come with it, the NFL’s salary cap should continue to increase moving forward. Garoppolo’s cap hits over the final three seasons of his contract could end up acting as a boon for the 49ers as they attempt to hold on to other players long term. That list includes All-Pro tight end George Kittle.
Garoppolo’s Future Cap Hits
- 2020: $26.6 million
- 2021: $26.9 million
- 2022: $27.0 million
By the time 2021 comes around, with the likes of Prescott, Watson and Lamar Jackson likely having received extensions, Garoppolo’s deal is going to look like a major bargain.
This is obviously going to play a role in the 49ers’ decision-making process regardless of how the 2020 season turns out. If Garoppolo plays exceedingly well and leads San Francisco on another deep playoff run, that could result in a huge extension following the 2020 season. If not, it would be even more likely that Garoppolo plays out his entire five-year contract in San Francisco.
